Are There Any Taxes Applied When Playing At Live Casino Philippines?
Playing at a live casino has become a popular pastime in the Philippines, thanks to the convenience it provides to casino enthusiasts. Games like mega ball live casino, live casino blackjack, baccarat live casino, and live casino roulette are some of these platforms’ favorite offerings. But along with the thrill comes a question asked by many: are there any taxes applied when playing at Live Casino Philippines?
Different live casino operators, including Haha777, that offer options for live casino login from mobile devices through a live casino app have become prominent nationwide. These platforms not only offer fun and excitement, but they also provide opportunities to win real cash. So, understanding the financial implications, including tax obligations, is crucial.
Taxes in Live Casino Philippines 2023
As a rule of thumb, income derived from any source is usually taxable. It does not exclude income from live casino or online gambling. However, how taxes apply to wins from live casino Philippines can be complex.
The Philippine Bureau of Internal Revenue (BIR) in the Philippines governs the taxation on winnings from online live casinos. And these laws apply to both live casino online real money games and physical casino establishments.
Even though you might be playing your favorite games like live casino mega ball bingo or live casino crazy time for fun, a win is considered income, and the Philippine tax code generally imposes taxes on all kinds of income. But the country’s tax rules regarding casino winnings have undergone a few changes in recent years.
Withholding Tax on Live Dealer Slot Casino Winnings
According to the TRAIN law initiated in 2018, all PCSO lotto winnings above PHP 10,000 are subject to a 20% tax. This rule applies to all slot games PCSO offers, including online lottery games. Nonetheless, the law needs to be clarified on how it affects online live casino games like live casino blackjack or baccarat live casino.
Operators like the Philippine Amusement and Gaming Corporation (PAGCOR) previously stated that winners must pay a 20% final tax for prizes and winnings exceeding PHP 10,000. Again, it needs to be clarified whether this rule applies to live casino games.
Tax on Regular Casino Income in the Philippines
PAGCOR and all its licensed SA Gaming casino operators, including those operating live casino online platforms, must pay a 5% franchise tax on their gross revenue. The operators usually deduct this amount before distributing the rest of the winnings to players. So, consider this an indirect tax you pay when playing at a live casino in the Philippines.
Professional Gamblers and Casino Taxes
The case could be different if you gamble at a live casino online, and it’s not just a hobby but a professional activity. If your primary source of income is playing casino games, you could fall under the category of self-employed or proprietary individuals. These individuals must pay an 8% tax on their yearly net income if it is at most PHP 3 million.
In summary, the taxation laws regarding live casino online winnings in the Philippines are ambiguous. Consult a tax professional if you regularly play live casino games with sizable winnings. It can help ensure you reach your tax obligations soundly, allowing you to enjoy your favorite games like Fishing, Sports betting, Esports Betting, and Lottery games.